Thursday, May 4, 2017

CDL Htrust Acquire UK Hotel

Acquisition of a 5-star luxury hotel which is located in proximity to the heart of Manchester city centre 
Property price of £52.5 million with a net property income yield of 7.3% for FY 2016  DPS accretion of 2.7%
Rare opportunity to acquire an iconic hotel in Manchester and gain exposure to a key beneficiary city of the Northern Powerhouse proposal
Strengthens portfolio and earnings base through diversification

 The purchase consideration for the Acquisition is based on the property price of £52.5 million (approximately S$94.1 million)2, and payment of approximately £0.4 million (approximately S$0.7 million) based on the estimated net working capital and cash of the Target, as at the time of completion with the aggregate amount being approximately £52.9 million (approximately S$94.7 million). Upon completion, the aggregate leverage of CDLHT is expected to be approximately 39.1%18.

The Property is a purpose-built 5-star luxury hotel offering 165 rooms and a comprehensive suite of facilities. It is located in proximity to the heart of Manchester city centre, and approximately 16.0 km from Manchester Airport, United Kingdom’s (“UK”) best airport for the third year in a row by Globe Awards4. It is also within the vicinity of top office developments such as Spinningfields, prominent retail establishments such as Arndale Shopping Centre, one of the busiest retail malls in UK5, and entertainment hubs such as Royal Theatre Exchange, the Manchester Opera House and the Manchester Arena.

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